Pakistan’s young people face growing difficulties finding suitable employment as the country struggles to connect education with labour market needs. New figures highlight a major skills gap, limited access to technical training and rising unemployment among university graduates.
A report published by Dawn on October 14, 2026, cited findings that only 7% of Pakistani youth have access to formal technical and vocational training. The regional average stands at 22%. The report also cited a World Bank estimate that the skills gap costs Pakistan $31.5 billion annually in lost productivity and unrealised export potential.
The issue has gained attention as global leaders discuss ways to improve youth employment in the age of artificial intelligence (AI). The World Economic Forum’s annual meeting of Global Future Leaders opened in Dubai on Tuesday, with youth employment in Pakistan among the topics under discussion.
Graduates Struggle to Find Suitable Jobs
Pakistan’s employment challenges extend beyond people with limited education. University graduates also struggle to secure jobs that match their qualifications.
According to figures cited in the latest reporting, graduate unemployment in Pakistan stands at 18.3%, compared with an overall unemployment rate of 14.7%. Among graduates aged 20 to 24, the unemployment rate reaches 32.8%, based on Gallup Pakistan’s analysis of the Pakistan Labour Force Survey 2024–25.
These figures highlight the growing difficulty young people face when entering the workforce. Many spend years completing their education but struggle to find employers offering suitable positions.
The problem also affects young people who lack professional experience. Employers often seek practical skills, workplace experience and technical knowledge, while many graduates leave educational institutions without sufficient exposure to industry requirements.
Skills Gap Limits Youth Employment Opportunities
Limited access to vocational training remains another obstacle. Technical education can help young people prepare for careers in manufacturing, information technology, construction and other industries. However, the reported training gap suggests that many young Pakistanis lack access to these pathways.
The rapid growth of artificial intelligence adds another challenge. As businesses adopt new technologies, workers increasingly need digital skills and the ability to adapt to changing job requirements.
Pakistan also faces a gender gap in employment and education. The latest reporting indicates that nearly one-third of young people aged 15 to 29 are not in education, employment or training. Among young women, the proportion exceeds half.
This situation highlights the need for better career guidance, professional mentoring and stronger connections between educational institutions and employers.
What Pakistan Needs to Address the Crisis
Expanding technical and vocational education could help more young people develop skills that employers need. Universities and training institutes could also strengthen practical learning through internships, industry partnerships and career counselling.
Businesses, meanwhile, need clearer ways to connect with qualified entry-level workers. Better cooperation between employers and educational institutions could help students understand job requirements before graduation.
Pakistan’s ability to create productive employment will remain important as its young population enters the labour market. Without stronger links between education, training and industry, many young people may continue to struggle to find work that matches their abilities.
